Full Speed Ahead for Payment Facilitators
10-26-2016
By Amy Zirkle
For those of us in the payments industry, we know first-hand the impact technology has in transforming our industry. Whether it’s innovation at the point-of-sale, expanding the reach of mobile payments and digital wallets, the growth of online payments, or the deployment and use of API’s, technology will continue to shape all aspects of the payment landscape, including the merchant services and sales channel. This innovation is perhaps best represented by the continuing growth of payment facilitators. Whether you think of them as aggregators, or payment service providers, payment facilitators offer another model for acquiring.
As the ISO channel leverages technology, there is a natural evolution towards the integration of software capabilities. As integrated software vendors (ISVs) begin to incorporate payment capabilities, they can offer an expanded package of services to support payment acceptance, as well as accounting system integration and billing systems management. While the potential for the payment facilitator segment to grow is significant, it remains paramount that those players entering the payments arena do so with a deep knowledge and understanding of risk mitigation and management, underwriting requirements for the submerchant base, and the establishment of a robust program to ensure compliance with all the key card network and industry rules.
With an eye on the potential growth of the payment facilitator model, ETA developed its Guidelines document to provide aspiring payment facilitators with the tools necessary to properly develop and incorporate a risk and compliance program. Working closely with ETA member companies who have an active interest in the payment facilitator space, ETA crafted the Guidelines to serve as a toolkit for payment facilitators to understand all levels of appropriate portfolio oversight, as well as best practices, recommendations and the ongoing responsibility to manage and evaluate submerchant risk exposure.
You can find the Payment Facilitator Guidelines here.
About ETA
The Electronic Transactions Association (ETA) is the world’s leading advocacy and trade association for the payments industry. Our members span the breadth of significant payments and fintech companies, from the largest incumbent players to the emerging disruptors in the U.S. and in more than a dozen countries around the world. ETA members make commerce possible by processing approximately $56.75 trillion annually in purchases and P2P payments worldwide and deploying payments innovation to merchants and consumers.
ETAs membership spans the breadth of the payments industry to include independent sales organizations (ISOs), payments networks, financial institutions, transaction processors, mobile payments products and services, payments technologies, and software providers (ISV) and hardware suppliers. For more information, visit electran.org.
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